What the Government Shutdown Means for the HECM Program

The government shutdown does not not impact your clients’ ability to receive monthly payments or access funds from their lines of credit. However, FHA will stop insuring new HECM reverse mortgages until the government reopens. Lenders can still close loans with the understanding that they won’t be insured until a later date. In general, FHA … more What the Government Shutdown Means for the HECM Program

Former FHA Commissioner Recommends Separating HECM From MMI Fund

Public policy experts debated proposals to strengthen FHA for the future needs of U.S. housing at an event hosted by the Urban Institute in Washington, DC, on Tuesday. Carol Galante, an FHA Commissioner during the Obama Administration, presented strategies to sustain the government’s support of underserved populations while also continuing to serve a broad spectrum … more Former FHA Commissioner Recommends Separating HECM From MMI Fund

FHA Clarifies Upfront MIP Formula For HECM Refinances

In one of its final acts of 2017, the Federal Housing Administration published FHA Connection (FHAC) Release Notes that updated and clarified its formula for calculating the initial mortgage insurance premium for refinanced Home Equity Conversion Mortgages. The announcement was made via FHA Info #17-59, published on Friday, December 29, and posted to the HECM Lenders … more FHA Clarifies Upfront MIP Formula For HECM Refinances

FHA Changes IMIP Formula For HECM Refinances

The Federal Housing Administration today published FHA Info #17-59 announcing that it has posted on its HECM for Lenders page on hud.gov, FHA Connection (FHAC) Release Notes, dated December 28, 2017, for the Initial Mortgage Insurance Premium (IMIP) formula for HECM refinance cases. The formula was modified on November 14, 2017, and affects only HECM … more FHA Changes IMIP Formula For HECM Refinances

Government Researchers Evaluate FHA Risk Management Tools for MMI, HECM

At the request of Congressmen Sean Duffy (R-WI) and Blaine Luetkemeyer (R-TX), the General Accountability Office – Congress’ research arm – published a comprehensive analysis of the capital requirements and tools employed by the Federal Housing Administration to manage risk in its Mutual Mortgage Insurance (MMI) fund. Publication of the report comes on the heels … more Government Researchers Evaluate FHA Risk Management Tools for MMI, HECM

FHA Increases HECM Lending Limit to $679,650

Beginning January 1, 2018, the national lending limit for Home Equity Conversion Mortgages will increase to $679,650 from $636,150. Details were announced today in Mortgagee Letter 2017-17. This new loan limit is also applicable to Freddie Mac’s special exception areas: Alaska, Hawaii, Guam, and the Virgin Islands.

PACE Liens Now Considered a Mandatory Obligation

Effective for case numbers assigned on or after January 6, 2018, properties encumbered by a PACE obligation can be paid off using HECM proceeds. “Clarification is provided to identify PACE obligations as Mandatory Obligations that must be paid off at closing, and may be paid off using HECM proceeds,” according to Mortgagee Letter 2017-18. In … more PACE Liens Now Considered a Mandatory Obligation

Maintenance Planned For Electronic Appraisal Delivery

The Federal Housing Administration announced in FHA INFO #17-49 that its Electronic Appraisal Delivery Integration and Production environments are scheduled for planned system maintenance and will be unavailable from 12:00 PM (Eastern) on Saturday, November 11, 2017, through 9:00 PM (Eastern) on Sunday, November 12, 2017. Normal operations are expected to resume once system maintenance … more Maintenance Planned For Electronic Appraisal Delivery